Vivendi receives two offers for SFR

The supervisory board of French media company Vivendi, the parent company of SFR, France’s second-largest mobile provider in terms of subscribers, has received two offers for the unit – from domestic broadband operator Numericable and third-placed cellco Bouygues Telecom. Local newspaper La Tribune reports that both suitors have valued SFR at around EUR19 billion–EUR20 billion (USD26.08 billion–USD27.45 billion). According to the article, the board of directors, which comprises of Henri Lachmann (CEO of Schneider Electric), Alexandre de Juniac (CEO of Air France KLM) and Vincent Bollore (CEO of Bollore Group) among others, have eight days to evaluate the offers.

Sources have disclosed that Numericable and its majority shareholder, Altice Group of Luxembourg, have tabled a bid which consists of EUR11 billion in cash (comprising EUR8 billion in debt and EUR3 million via a capital increase) and 32% of the new merged entity. For its part, Bouygues Telecom’s proposal comprises EUR10.5 billion in cash and 46% of the share capital of the new entity. Further, Bouygues Telecom has promised to stage an initial public offering (IPO) for the new company ‘as soon as possible’, with Vivendi given the opportunity to sell an additional 15% stake in the enlarged company.